Discharge and IPA

MrVan

Hi all this forum has been a fantastic help over the last year and helped me sleep at night throughout my bankruptcy application and beyond.
I am due to be discharged soon and have read conflicting information regarding reporting income after discharge if you have had an IPA.
I understand an IPA can last upto 3 years and the amount can be changeable in line with income changes and they can indeed stop and start also.
My IPA was for 7 months and was simply for the sum of my council tax for the financial year of declared bankruptcy. Hence I received confirmation the IPA was complete in March after the 7th payment.
My question is as the IPA stated it was 7 months and I am no longer paying, thus won't be paying at the time of discharge - am I correct in thinking I will not have to report any income changes after discharge?
Hope this makes sense and someone can help answer my query?
Thank you.

debt_doctor

Hi,

I have seen this 'c/tax IPA' mentioned before - it's new to me and I'm really not sure of its legallity as a stand alone IPA - they seem to treat it like an NT Tax code IPA.

If you have received information (make sure you keep it forever!) that your IPA is COMPLETE then that would not require you to continue to update your income details after discharge and you would be free to earn as you wish.

Has anyone else had a 'Council Tax IPA' ??

DD

Minkym00

If you are the only one named on your council tax bill then your annual council tax is a probable debt in bankruptcy (as actually the whole bill is due in April, it’s just that the council let’s you pay in instalments). If there is another adult on the bill then they are still liable for it.

So, when you become bankrupt you can ring up your council and tell them and they will write off the remainder of the bill. The OR should remind you to do this. This then frees up income which the OR can claim as surplus via a council tax IPA. If your income/outgoings are in deficit though, you can argue to keep it or a portion of it. It only lasts for the balance of that financial year and no longer, and you can’t claim the money back you’ve already paid.

The three years only kicks in as soon as you sign a normal surplus IPA. MrVan as you didn’t have a normal surplus IPA then, as soon as you are discharged, you don’t have to tell the OR about your income any more. They can only implement a surplus IPA during the 12 months of your bankruptcy (UNLESS they ask a court to extend it) so once you’re discharged you’re home and dry.

Minkym00

I mean unless they apply to the court for an Income Payments Order which, as long as they have applied before the 12 months, will be granted by the court after discharge. I don’t mean extend the period of bankruptcy.

MrVan

Thank you for your replies I did assume my IPA was slightly different as it wasn't based on actual surplus income. I have not heard anything in regard to an IPO and I assume I would be notified if they were applying for such. I work part time and receive benefits with minors to care for also. Looking forward to rebuilding, hopefully gaining full time employment and saving for their future. After over 20 years my ex left me in a difficult position with hard decisions to make but ultimately I am now in a much better place :rotfl:

Minkym00

* provable, not probable